In order to understand how bail bond companies make money, one needs to understand about the bail bond system. The rules for bail bond companies can differ from state to state, but the process of dealing with a bail bond company is by and large the same.
- Getting arrested – The process begins when the defendant gets arrested. The entire process starts with the theory that the arrest is not so minor, you are issued with a quote and one can get bail. Once the process takes place, a judge will set a bail amount as per the gravity of the crime.
- Defendant cannot afford the bail amount – If the bail is say set at $10,000 and defendant cannot afford to pay, one can get in touch with a bail bond company so that one need not stay in the jail until the trial. For instance, if an individual has to pay $10,000 bond and cannot afford to pay, he/ she will need to pay just $1,000 to the bail bond company.
- Signing of the bail agreement – A bail bond company is like an insurance company. The agency will take the responsibility of paying the bail amount while the person usually needs to pay 10% or 20% of the bail amount to the agency. Bail Bonding companies usually have tie-ups with courts and judges trust that the suspects will turn up in a court or the agency will pay the bond amount. Then the person is released.
Turning up before the court helps bail bond company make money
According to court experts, 8 out of 10 respondents turn up for the hearing. Once the case is resolved, the individual does not get the 10% of the bail amount that was deposited earlier. This way the bonding company makes money. Certain bail bond companies also provide financing alternatives to individuals who cannot afford to pay the 10% of their bail amount.
What will happen to the bail bonding company if the defendant does not show up before the court?
This is one complication that can make the bail bond company lose their bond money. In order to prevent such situations, many bail bond companies hire bounty hunters, also called private investigators, who look out for the defendants who do not show up for their court hearings. Once the bounty hunter finds the individual, the investigator will receive a certain amount by returning the suspect to bail from jail.
This is how bail bond companies make their money.